Sociedad Quimica Y Minera De Chile Sa Pfd Series A · BCS:SQM_A
Sociedad Quimica Y Minera De Chile Sa Pfd Series A — Sociedad Química y Minera de Chile (SQM) — Investor Presentation (May 2016)
19 slides from Sociedad Quimica Y Minera De Chile Sa Pfd Series A's investor presentation, May 2016
Slide 1: May 2016
May 2016
Slide 2: Important Notice
Important Notice Statements in this presentation concerning the Company’s business outlook or future economic performances, anticipated profitability, revenues, expenses, or other financial items, anticipated cost synergies and product or service line growth, together with other statements that are
Slide 3: Investment Highlights
1 INVESTMENT HIGHLIGHTS
Slide 4: SQM at a Glance
SQM at a Glance World Leader in Specialty Businesses: Potassium Nitrate, Iodine, Lithium & Solar Salts Financial Profile Healthy Credit Metrics Revenue LTM(1) : US$ 1.7 billion Debt/Equity Ratio: .93 EBITDA(2) LTM : US$ 703 million NFD/EBITDA LTM .71 EBITDA Margin LTM : ~ 41% Moody’s
Slide 5: Diverse Operations
Diverse Operations Sales Distribution 110 20 Sales to thousands of Offices and customers in over 110 commercial countries. representation Sales diversified by industry and region No customer represents more than 4% of sales Corporate Presentation / May 2016 5
Slide 6: Unique and Abundant Natural Resources
Unique and Abundant Natural Resources High-quality reserves low-cost operations Caliche Ore Caliche ore is only found in Chile The world’s largest deposits of nitrates and iodine Proprietary mining rights pursuant to exploitation concessions Salar Brines Low processing costs due to its hig
Slide 7: Business Lines
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Slide 8: Potassium
Potassium <3% 1.312kMT 2015 Market Share(1) LTM(2) Sales Volumes US$ 427mm 19% LTM Revenues Contribution to LTM Gross Profit Potassium Chloride: Industry Dynamics SQM Highlights Potassium chloride is the most commonly used Low-cost producer of potassium chloride potassium-based fertilizer. Sold
Slide 9: Specialty Plant Nutrition
Specialty Plant Nutrition 47% 834kMT 2015 KNO3 Market Share(1) LTM Sales Volumes (2) (3) US$ 649mm 36% LTM Revenues Contribution to LTM Gross Profit Industry Dynamics SQM Highlights Potassium nitrate (KNO3) Access to reserves of potassium and nitrate provides unique benefits: Developed distrib
Slide 10: Iodine and Derivatives
Iodine and Derivatives 26% 9.2kMT 2015 Market Share(1) LTM(2) Sales Volumes US$ 247mm 12% LTM Revenues Contribution to LTM Gross Profit Industry Dynamics SQM Highlights Main uses: X-ray contrast media, LCD, Low-cost producer pharmaceuticals and sanitizers Developed distribution and sales Glo
Slide 11: Lithium and Derivatives
Lithium and Derivatives 26% 41kMT 2015 Market Share(1) LTM(2) Sales Volumes US$ 253mm 26% LTM Revenues Contribution to LTM Gross Profit Industry Dynamics SQM Highlights Main uses: batteries, lubricant, glass, Leading lithium chemicals producer in pharmaceuticals. Future potential related the wor
Slide 12: Industrial Chemicals
Industrial Chemicals 114kMT LTM(1) Sales Volumes US$ 90mm 4% LTM Revenues Contribution to LTM Gross Profit Industry Dynamics SQM Highlights Various traditional uses for industrial nitrates Operational flexibility with certain industrial sodium and related to glass, metal treatment, water potassi
Slide 13: Other Information
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Slide 14: Capital Expenditure Program
Capital Expenditure Program Capital Expenditures 2015: Capital expenditure reached approximately US$111 million, primarily related to: Optimization of the potassium nitrate facilities Increasing iodine and nitrate production in Nueva Victoria Exploration and construction of new wells at Salar
Slide 15: Other Relevant Topics
Other Relevant Topics Ownership Structure(1) Dividends Others Pampa Dividend policy for 2016: 50% of net income Chile 13% Group Special dividend paid in May 2016: US$150 million and Kowa Group 32% Bank of New York (ADRs) 23% SQM Business Opportunities JV to develop lithium operations in Argent
Slide 16: First Quarter 2016 Results
First Quarter 2016 Results Revenue Contribution Gross Profit Contribution 1Q2016/1Q2015 1Q2016/1Q2015 420 150 388 30 392 400 2 22 -8 140 1 US$ Million 380 -4 131 -2 -2 130 360 -15 340 120 -12 114 320 110 -25 -1 300 100 Lower prices in iodine and potassium businesses Volume recovery in 2016 helps
Slide 17: Financial Performance
Financial Performance Revenues Net Income(1) 700 649 3.000 US$ Million US$ Million 2.429 600 543 2.500 2.145 2.203 2.014 500 467 2.000 1.728 1.733 400 1.500 296 300 213 200 1.000 200 500 100 0 0 2011 2012 2013 2014 2015 LTM 2011 2012 2013 2014 2015 LTM Mar 16 Mar 16 EBITDA(2)/Revenues NFD(3)/EBITDA
Slide 18: Investment Highlights
Investment Highlights Unique and abundant natural resources Sales in diverse industries, sold globally SPN: Largest global producer Potassium: Uniquely located to supply major markets Iodine: Leading player in strong market with diverse uses Lithium: Lowest-cost producer Industrial Chemicals: Domina
Slide 19: Contact Information
Contact Information: Gerardo Illanes: VP of Finance and IR, gerardo.illanes@sqm.com Kelly O’Brien: Head of Investor Relations, kelly.obrien@sqm.com Carolyn McKenzie: Investor Relations, carolyn.mckenzie@sqm.com
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